AU Small Finance Bank Limited — QIP/Rights/Pref., 28-03-2025: Allotment of Securities

AU Small Finance Bank has announced a board meeting on March 28, 2025, to approve the allotment of 77,000 Unsecured, Rated, Listed, Redeemable, Subordinated, Non-Convertible Lower Tier II Bonds, totaling ₹770 crores. These bonds, with a face value of ₹1,00,000 each, will have a tenure of 10 years and offer an interest rate of 9.20% per annum, payable annually. This move enhances Tier II capital, potentially strengthening the bank's financial position. Investors might view this as a positive outlook for capital adequacy, with improved liquidity prospects, though the unsecured nature of the bonds presents some risk.